Tax Policy

The Company carries out its operations in a global context with a constantly changing environment and is subject to an increasingly complex set of tax regulations. BW Offshore’s leading principle is that its tax position is a reflection of its business operations. The structuring of the Company’s investments worldwide is thus driven by its business operations and the applicable regulatory framework. In the countries where the Company operates, BW Offshore is committed to be taxed in accordance with its economic substance and value creation.

BW Offshore’s Tax Policy is based on its Tax Principles and is closely aligned to the Company’s business strategy. The Organization for Economic Co-operation and Development (OECD) principles have been used as guiding principles in developing BW Offshore’s Tax Policy and Tax Principles. For BW Offshore, transparency and fairness have been especially targeted, and the Company is committed to live by these principles in all its operations. Beyond complying with applicable laws in countries of operations, BW Offshore also follows OECD’s principles in all jurisdictions in which it has activitites. BW Offshore complies with the OECD transfer pricing guideline (fairness). As part of this, the Company files detailed reports and transfer pricing documentation in accordance with OECD standards (transparency). BW Offshore pursues an open and constructive dialogue with tax authorities in the jurisdictions it operates in, based on mutual respect, transparency and trust, disclosing all relevant facts and circumstances.

BW Offshore’s Tax Policy and Tax Principles are approved by the Board of Directors. The management of tax risks is fully integrated in the Company’s global risk governance process. As part of this process, the VP Group Tax, under the authority of the Chief Financial Officer, oversees the implementation of the policy and reports on a regular basis to the Board of Directors’ Audit Committee.

Tax Principles

BW Offshore’s Tax Policy is based on the following fundamental principles which guide its decisions on tax matters:

• Responsible compliance

BW Offshore shall pay tax in accordance with relevant tax laws and regulations in all jurisdictions in which it operates. BW Offshore shall prepare and file all required tax returns, providing complete, accurate and timely disclosures to all relevant tax authorities. For this purpose, the tax function shall be made-up of qualified and trained tax professionals.

BW Offshore aims for certainty about its tax positions. Where tax law is unclear or subject to interpretation, the Company shall seek external guidance from qualified external advisors or engages in transparent dialogue with the tax authorities where appropriate. BW Offshore shall validate its tax positions with the reasonable expectation that its interpretation will be upheld in court.

• Fairness - Tax follows business

BW Offshore shall allocate profits to countries in which value is created in accordance with internationally accepted standards as published by the OECD, as well as relevant rules and regulations in the local jurisdictions the Company operates in.

The remuneration for BW Offshore’s intra-group transactions must follow the arm’s length principle in accordance with the OECD transfer pricing guidelines.

The Company shall seek efficiency in tax matters, including the prevention of double-taxation, following reasonable interpretation and application of tax rules.

BW Offshore will only consider tax incentives which are aligned with its business strategy and where they are based on economic substance. 

• Transparency

BW Offshore is transparent about its approach to tax.

BW Offshore’s tax filings and disclosures shall be made in accordance with all applicable regulations, as well as applicable reporting requirements and standards. As a part of this, the Company shall prepare and submit, when required, detailed reports and transfer pricing documentation to the tax authorities, in line with the OECD initiative under the BEPS project.

BW Offshore’s commitment to building a fair, supportive and transparent culture is embedded in its all the Company’s policies. In managing its tax affairs, BW Offshore’s employees must adhere to the BW Offshore Code of Ethics and Business Conduct and its external tax advisors must comply to the BW Offshore Supplier Code of Ethics and Business Conduct and BW Offshore Supplier Ethical Employment Practice Guidelines.

BW Offshore opposes any and all forms of corruption and is, together with the other Companies related to the BW Group, a member of the Maritime Anti-Corruption Network MACN, a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large.

Furthermore, under the “Speak Up Channel”, employees or external business partners can anonymously report any suspected or known violations which also contributes to tax transparency.